Consumers Energy Business Solutions

Commercial and Industrial Energy Efficiency Program

April 18, 2013

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TODAY’S PRESENTER

Ralph Huston | Energy Advisor Consumers Energy Business Solutions 3965 Okemos Rd. Ste. A-1 | Okemos, MI 48864 877.607.0737 x1949 | 517.881.9971 cell | 517.381.0189 fax rhuston@franklinenergy.com | www.comsumersenergy.com/eeprograms

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Today’s Topics

• Program Summary

• Special Programs

• 2013 Measure Updates

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Why Energy Efficiency?

• Good for your business

• Good for the environment

• Good for Michigan

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Energy Efficiency Can Save You Money

• By improving your energy efficiency you can improve your company’s bottom line in many ways

– Shorten payback times

– Lower energy costs

– Increased productivity

– Increased employee morale

– Decreased maintenance costs

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Customer Participation

• Customers from all business segments and sizes are represented

• Consumers Energy has distributed more than $59 million in incentives to customers since the program began in 2009

• Over 50,000 commercial & industrial customers have participated

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Who’s Participating Barry County

Delton Kellogg Schools, Delton $1,755

Genesee County

Flint Community Schools, Flint: $43,401

Genesee Packaging, Inc., Flint $4,332

Ingham County

Ashley Delta, LLC, Lansing $46,350

Ionia County

Cargill Kitchen Solutions, Lake Odessa: $153

Iosco County

Oscoda Area Schools, Oscoda: $2,240

Kalamazoo County

Green Bay Packaging, Inc., Kalamazoo $1,150

Galesburg-Augusta Community Schools, Galesburg $2,450

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Kent County

Ashley Grand Rapids, LLC, Grand Rapids: $40,168

Spectrum Health Hospitals, Grand Rapids: $224,250

Oakland County

Holly Area Schools, Holly: $1,464

Otsego County

Kirtland Community College, Gaylord: $6,060

Ottawa County

Coopersville Public Schools, Coopersville: $11,421

Shiawassee County

Machine Tool and Gear, Inc., Owosso: $3,450

Business Programs • Comprehensive business solutions

– Rebates based on amount of each project’s first year savings for lighting, HVAC, insulation, hot water heating, controls and other energy savings projects.

• Small business solutions – Designed to help small commercial and industrial customers, typically

considered "hard to reach” using less than 400,000 kWh annually

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Comprehensive Business Solutions

There are two types of Incentives: • Prescriptive incentives

– Think “off the rack,” get it and go • You install energy efficient equipment and achieve energy

savings and pre-determined incentive levels

– Incentives typically average 20% to 50% of the incremental cost of purchasing qualifying technologies

• Custom incentives – Think “tailored,” custom fit to your business

• Incentives are determined on a case-by-case basis • Must have a greater than one-year payback period and less

than eight years

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Small Business Solutions

• Objectives: – Promote energy efficiency to small businesses – Achieve low installation costs and short payback periods – Minimize out-of-pocket costs to customers

• Target customers:

– <400,000 kWh annual electric usage – Commercial customers who typically would not participate in

the Consumers Energy Business Solutions Program due to: • Lack of capital dollars to make improvements • Lack of technical knowledge • Limited personnel and resources

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Small Business Solutions

• Free facility assessment • Detailed project proposal from program • Installation of approved energy-saving equipment • Inspections will assure quality and verify energy

savings • Minimum hassle or time required • Reduction in energy consumption and costs • Higher incentives on a limited number of

measures • Up to $7,500 in incentives per customer

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What’s Ahead in 2013

• More money for incentives

– $23.5 million electric incentives

– $7 million gas incentives

• Over 40 new measures

– 200 measures in total

• Special programs

• More opportunity to participate

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Special Programs

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Programs

• New construction

• Multiple measure bonus program

• Buy Michigan

• Compressed air program

• Building operator certification

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New Construction

• Incentives available for design and construction of energy efficient buildings

• Three tiered structure

– The more efficient the building the higher the potential incentive

– Incentives for design team and owner

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Project Details • New Construction Project • Completed: 2010 • Contractor: Tower Pinkster • Overall Incentive from Consumers Energy: $48,500 • Energy Savings: 33.7 percent • Enough savings to supply energy to 20 homes/year • Anticipating Leadership in Energy and Environmental

Design (LEED) Gold Certification

Kalamazoo Regional Education Service Agency -WoodsEdge Learning Center

Multiple Measure Bonus

• Additional incentive bonus for customers pursuing “deep dive” projects

• Customer is eligible to receive an additional bonus incentive of 15% of the total incentive amount when – Secondary measure incentive must be ＞25% of the primary

measure incentive – More than two measure categories must be applied for on the

same application

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• Purchase products made in Michigan and qualify for a bonus incentive – At least 50% of the cost to

manufacture and assemble this product (exclusive of packaging) is performed in the State of Michigan

• Customer qualifies for a 15% bonus on the total incentive of installed measure

• Affidavit from manufacturer with application

Buy Michigan

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Prescriptive Measures

2013 Incentive Catalog

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Lighting

• Lighting is typically 30% of your bill

• Easy to implement & cost effective

– T12-T8/T5 replacement

– Exit signs

– Exterior lighting

– Metal halide replacement

– Occupancy sensors

– Lighting controls

– Induction or LED lighting

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Heating Ventilation and Air Conditioning

• Heating & cooling combine for more than 50% of the energy budget

• Easy to find projects – Programmable thermostats

– Boiler/furnace/RTU tune-ups

– Economizers

– Boiler controls/sequencing

– Heat recovery

– Destratification fans

– Energy management systems

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Water Heating

• Accounts for 10% of energy use

• Opportunities are in all buildings

– Water heaters

– Pipe/water heater insulation

– Pool heaters

– Pool covers

– Incoming water heat recovery/preheat

– High efficiency boilers

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Plug Loads

• “Vampire loads” - they are everywhere

• Hard to control

• Eat away at your energy cost

– Individual printers

– Computers

– Chargers

– AC adapters

– Vending machines

– Copy machines

– Space heaters

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Lighting: T12 to T8 Retrofit

• Can T12 fluorescent lamps retrofitted to T8s and be incentivized in 2013?

YES, BUT…

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Lighting: T12 to T8 Retrofit

• T12 to standard T8 applications are not eligible to receive an incentive

– Except 2 and 3 foot retrofits

• T12 to High Performance (HP) or Reduced Wattage (RW) T8/T5 lamps ARE eligible to receive an incentive

• Qualifying products are listed on the CEE1.org website

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VFD’s: Prescriptive up to 250 HP

• HVAC motors greater than 100HP, or process motors greater than 50HP require: – Information sheet on

the VFD (Application – A12)

– 7 days of pre and post meter data

• Electronically commutated motors on furnaces

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Industrial Battery Chargers, UPS and Transformers

• Industrial battery chargers – New or replacement three

phase, high frequency battery chargers for electric vehicles

• Uninterruptable power supply – Single normal mode AC output

UPS – Multiple normal mode AC output

UPS

• Transformers – Single phase – Three phase

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Correctly Sized Hydronic Pumping Systems

• Information required:

– Existing pump operational performance

– Proposed pump operational performance

– Pumping system improvement summary

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Domestic Water Heater

• Air-to-water heat pump

– Tank style (EF ≥ 2.0) - $750

– Up to $6,000 for a 300-MBH, coefficient of performance ≥ 3.0

– Electric customers only

• Boiler style

• Tank style

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HVAC Controls

• Boiler controls – Boiler plant sequencing – Chilled water reset – Modulating boiler control – Oxygen trim control – Linkageless boiler control

• Centralized energy management system – Optimal start-stop for air

handling units – HVAC occupancy sensor

control

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Chiller Tune-up

• Air or water-cooled chillers

• Greater than 20-tons capacity

• Used for either space or process cooling

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Kitchen Equipment

• Temperature and optical sensor on ventilation hood

• Installing case cooler doors

– Retrofit or new

• Dishwashers

– Under counter, door, single tank, multitank

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Custom Projects

• A wide range of facility improvements can qualify for the program including:

– Boilers

– Compressed air

– Building or equipment controls

– Cooling

– Lighting

– Motors – Refrigeration – Process improvements – Heat recovery

• If it’s not a prescriptive measure it probably qualifies as a custom project

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We can do this WITH YOU

Thank you!

For more information contact the program team

(877) 607-0737 www.ConsumersEnergy.com/mybusiness

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